SINGAPORE: Brent oil may fall into a range of $85.68 to $86.49 per barrel, as it has broken a short rising trendline.

The break signals a reversal of the uptrend from $80.50. A tiny double-top has formed around a resistance at $89, suggesting a target of $85.68 as well.

The bearish divergence continues to build up on the hourly MACD. With oil having risen so much and experienced no decent correction, a perfect storm could be forming.

A break above $88.31 may lead to a gain into $89-$89.94 range.

Oil highest since 2014 as Turkey outage adds to tight supply outlook

On the daily chart, the drop looks like a pullback towards a support zone of $85.17 to $86.70, which slightly engulfs the zone of $85.68 to $86.49.

A break below $85.17 could open the way towards $81.57, as pointed by a rising channel.

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